Microsoft Wants to Buy Your Old iPad

Own an old iPad that no longer sees much use? Microsoft's happy to take it off your hands. The company recently began running a new promotion, offering Microsoft Store gift cards in exchange for "gently used" iPads. If you've got an iPad 2, 3, or 4 that meets that criteria, Microsoft will give you a minimum of $200 in store credit which you can spend on one of its Surface tablets or any other product available through the Microsoft Store.

Ballmer Admits What We All Knew: Microsoft Built Far Too Many Surfaces

At an internal meeting, Microsoft CEO Steve Ballmer admitted that the company overproduced the Surface RT tablet, leading to its recent $150 per unit price cut. As quoted by The Verge's Tom Warren, Ballmer plainly explained that the company "built a few more devices than [it] could sell."

But we already knew that.

In its most recent quarterly earnings release, Microsoft took a $900 million charge relating to the Surface RT tablet line, essentially admitting that the inventory that it has on hand was not worth its previous internal valuation; you can't cut the market price of a product that you have in a warehouse and not lower its value on your books. The write down cost Microsoft $0.07 per share. It missed expectations for the quarter.

Microsoft has been on a mission to clear Surface RT inventory for some time. As I wrote earlier this year, through a combination of giveaways and discounts, Microsoft was moving to liquidate what appeared to be mountainous superfluous unit volume of its ARM-based Windows tablet hybrid.

At that time, Microsoft released a bland statement, saying that the offers and handouts were in "response" to the "positive reaction" Surface had enjoyed since launch. That felt a bit backwards: If response had been so strong, why give away a single device or discount? Wouldn't organic demand be sufficient? Well, as it turns out, reaction hasn't been overly positive, so the entire argument was logically moot.

Ballmer said something else during the meeting that is a non-surprise: Microsoft is not selling as many Windows devices as it would like. We knew that, too. The figures released quarterly that describe the PC market are brutal - and dropping. Even Apple is suffering from declining Mac sales in the face of nearly insurmountable headwinds that it helped to create with its leadership of post-PC product categories.

Next-generation Surface devices are being designed and tested. I suspect that Microsoft learned its lesson regarding production volume: Prove product-market fit first, and then kick the afterburners.

Top Image Credit: BUILDWindows

Shelly Palmer Radio Report – July 16, 2013

If you've been waiting for a price drop to buy a Microsoft Surface tablet, your time is now. Microsoft recently announced a significant price cut in its entry-level Surface RT tablets. These are the less powerful Surface tablets on the market, and don't run the full version of Windows 8. However, the Surface RTs are decent in their own right, and are now $150 cheaper. A 32 gig model now runs $349, and doubling the storage to 64 gigs will cost $100 more at $449. The price cut was likely the result of a few factors, including poor sales numbers and new models likely to hit store shelves later this year. The line of Surface tablets has yet to truly take off, but Microsoft is rumored to be debuting new accessories for the Surface soon, including a battery-equipped keyboard cover. If you're looking to try out a lite version of Windows 8 or are just looking for a mid-range tablet option, the Surface RT is now available at $349, its lowest price ever.

A Tablet For The Holidays? Maybe

If you were hoping to purchase a new tablet this holiday season, you're in luck. Between Microsoft's recent launch of the Surface 2, Nokia unveiling what seemed like 100 new devices at Nokia World and then Apple's unveiling of the iPad Air and iPad mini with Retina display - there are several to choose from. Which should you buy?

Iteration From Apple

Apple's in a bit of a pickle right now, and it knows it. It used to enjoy close to 100 percent market share because Apple invented the category. Now, it has about 49 percent market share and the numbers are trending in the wrong direction.

The company knew it had to make a big splash to regain some momentum. It showed off two new devices: the iPad Air, which is thinner, happier, better, yummy yummy; and a new Retina display version of the iPad mini, which at 7 inches is a great form factor. They're good. But it's not really true innovation. (That's not to say Apple can't do true innovation anymore; the newly re-designed Mac Pro that was shown off just before the new iPads is stunning.)

But when Apple unveiled its new iPads, CEO Tim Cook said, "Our competitors don't really know what they're doing." He said that his competitors are making tablets, they're making notebooks, they're making Chromebooks. Cook said that Apple's clear focus and singular vision is better. I disagree. Truthfully, Apple is just making iPads. They're making them great. If you like an iPad, nothing else will do. But, if you want a combination of a PC and a tablet, Microsoft is really working hard.

So... What's Going on Between Nokia and Microsoft?

It makes no sense for Nokia to unveil a brand new tablet, powered by Windows RT, on the same day that Microsoft launched its new Surface 2 tablets. Nokia's about to be bought by Microsoft, yet for some reason still thought it was a good idea to unveil what's basically the same unit as the new Surface 2 (the new version of the tablet known as the Surface RT). Both of these devices are crippled because they're both RT units. The Lumia 2520 and the Microsoft Surface 2 are literally both the same unit from a technology standpoint.

The standout tablet from either company is the Surface Pro 2, which is a whole other thing because it's expensive. It's basically a laptop that's sold without the keyboard... which you will purchase separately making it even more expensive. The Surface Pro 2 with a keyboard is far more expensive than an iPad Air and more than double the price of the new iPad mini. Nothing to compare here. The Surface Pro 2 competes with Windows Ultrabooks, not Apple iPads.

Remember: It's Not Microsoft vs. Apple

The Surface Pro 2 is getting great reviews ... but there's no one lining up to buy them. The battle is not between Microsoft and Apple. The battle is between Google and Apple and, specifically, between Android devices and iOS devices. Microsoft hopes, wishes and prays to be included in the conversation, but it's not there. Microsoft is trying to create a market for tablet computing as opposed to tapping the market of tablet users - it may sound like a semantic argument, I assure you it is not.

Look at Microsoft's operating systems. You have Windows 8 on a PC vs. Windows 8 on a tablet vs. Windows RT ... these are operating systems that people will like when they learn to use them, but Microsoft has done nothing to teach them to use them. When you walk up to Windows 8, you go, "I want it to be Windows 7!" Microsoft has missed all kinds of consumer opportunities. What they have to do is figure out how they're going to beat Apple and Google at the game Apple and Google are actually playing - a game Microsoft clearly does not understand.

Who Won Triple Tablet Tuesday?

Apple. It said, "We're going to be here for Christmas, and you're going to be happy!"

Who lost? Microsoft. It's about to go and spend a big chunk of money for Nokia, and Nokia's sitting there going, "We don't know what we're doing..." and Microsoft is saying the same thing. Microsoft's got some work to do. There's a chance for Microsoft to make great strides in the tablet market, but looking at these holiday offerings, it's hard to be optimistic.